Reportedly, the semiconductor industry is dealing with a “profound” risk from geopolitics, as per Lung Chu—President of Industry Association SEMI China. Currently, the sector is experiencing a decline amid challenges like slowing demand for smart devices, inventory issues, and lowering prices of the memory chip. Now, the strains between China and the U.S. threaten to worsen the situation. Chu stated to CNBC, “The geopolitical peril is a major improbability.” He said the technology management plus export limitations on Chinese technology giant Huawei “can have profound brunt to the industry, basically changing even the international supply chain.” China and the U.S. have been trapped in a trade battle for over a year now.
In May, Washington listed Huawei on a blacklist that bans American companies from doing business to the Chinese telecommunications titan without permission. Soon after, the U.S. presented Huawei a 90-Day official pardon and permitted US businesses to persist selling limited products to the Chinese company. In this week, the U.S. DOC (Department of Commerce) received over 130 applications from firms requesting to sell US products to Huawei, none was granted the license, the report said. In the incident that it is prohibited access to U.S. companies—such as Intel and Qualcomm—Chu said, “The decline will get worse.”
Speaking of the semiconductor industry, recently, TCS (Tata Consultancy Services) launched robotic solutions. India’s biggest software exporter TCS in the last week launched new RPA (robotic process automation) solutions to drive higher accuracy and better superiority in the process of chip fabrication, and assist semiconductor firms with digital transformation. Allegedly, TCS has set up a new semiconductor CoE (Centre of Excellence) to develop and build closed-loop systems that will merge the power of automation and analytics to recreate the value chain of semiconductor fabrication.